Philips stock tumbles toward biggest selloff since 2008 after downbeat revenue outlook
The U.S.-listed shares of Koninklijke Philips N.V. plunged 15.7% toward a near two-year low in morning trading Wednesday, after the Netherlands-based medical technologies and products company provided a downbeat revenue outlook, citing "intensified global supply chain shortages" and the postponement of customer equipment installations. The stock, which was the biggest decliner listed on the NYSE, was headed for the biggest one-day selloff since it dropped 15.9% on Oct. 15, 2008. The stock is also on track for the lowest close since March 2020. Philips said overnight that it now expects fourth-quarter revenue of approximately EUR4.9 billion ($5.6 billion), which is about EUR350 million below previous guidance. "[W]e faced significantly intensified global supply chain issues across our businesses, in addition to customer postponement of equipment installations in hospitals," said Chief Executive Frans van Houten. Separately, the company said it increased the field-action provision related to the Philips Respironics recall by around EUR225 million, due to higher volumes of devices requiring remediation and increased supply costs. Philips' stock has plunged 24.2% over the past three months, while the S&P 500 has gained 8.3%.
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